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Cognizant Technology Solutions Corp - Class A

Exchange: NASDAQSector: TechnologyIndustry: Information Technology Services

Cognizant Technology Solutions Corporation (Cognizant) is a provider of custom information technology, consulting and business process outsourcing services. The Company is engaged in Business, Process, Operations and Information Technology Consulting, Application Development and Systems Integration, Enterprise Information Management (EIM), Application Testing, Application Maintenance, Information Technology Infrastructure Services, and Business and Knowledge Process Outsourcing, or BPO and KPO. The Company operates in four segments: Financial Services; Healthcare; Manufacturing, Retail and Logistics, and Other, which includes communications, information, media and entertainment, and high technology. In October 2013, Cognizant Technology Solutions of India acquired Equinox Consulting SAS.

Current Price

$52.32

+1.99%

GoodMoat Value

$134.76

157.6% undervalued
Profile
Valuation (TTM)
Market Cap$25.02B
P/E11.23
EV$29.13B
P/B1.67
Shares Out478.25M
P/Sales1.17
Revenue$21.41B
EV/EBITDA6.04

Cognizant Technology Solutions Corp - Class A (CTSH) Financial Statements

GoodMoat Analysis

Based on data as of March 26, 2026

Cognizant's financial profile is mixed for a value investor, showing a healthy balance sheet and strong free cash flow yield but lacking high-quality growth and profitability metrics. The company generates robust cash and carries minimal debt, yet its single-digit revenue growth and moderate returns on capital fall short of the framework's high-quality thresholds.

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Cognizant's financial quality is adequate but not exceptional according to the GoodMoat framework. The company's 4.9% YoY revenue growth is consistent but far from the double-digit, sustainable growth indicative of a high-quality business. While specific gross margin data is unavailable, the 16.1% operating margin is respectable but does not suggest significant operating leverage, a key quality indicator. The free cash flow picture is more favourable, with a 9.2% FCF yield indicating strong cash generation relative to its market value, though the conversion rate from EBITDA is not provided. The balance sheet is a clear strength, with a very low debt-to-equity ratio of 0.08, indicating a substantial net cash position and minimal financial risk. Return on capital, as indicated by the 14.9% ROE, is near but slightly below the framework's high-quality threshold of 15-20%. Overall, the financials point to a stable, cash-generative business with a fortress balance sheet, but one that is not demonstrating the high growth, expanding margins, or superior returns on capital that define a premium-quality enterprise. Analysis based on data as of 2024-07-21.

CTSH Financial Data

EBITDA$4.07B
Revenue (TTM)$21.41B
Gross Profit (TTM)$7.17B
Gross Margin
Operating Margin16.06%
ROE14.85%
ROA10.77%
Debt/Equity0.08
Current Ratio2.14
FCF$2.67B
FCF Yield10.65%
Piotroski F-Score
Rev/Share (TTM)$44.76
50-Day MA$56.49
200-Day MA$68.54
Shares Outstanding0.48B

CTSH Computed Insights

FCF$2.67B
FCF Growth Rate3.99%
EPS Growth (CAGR)3.24%
WACC10.00%

Income Statement

Balance Sheet

Cash Flow Statement

CTSH Financial Statements & Data

Cognizant Technology Solutions Corp - Class A (CTSH) financial data including income statement, balance sheet, and cash flow statement. This page provides a comprehensive view of Cognizant Technology Solutions Corp - Class A's financial performance and position as a Technology company.

Trailing twelve-month (TTM) revenue is $21.41B. Gross profit (TTM) is $7.17B. EBITDA is $4.07B. Earnings per share (EPS) is $4.56. The P/E ratio is 11.23. Market capitalization is $25.02B.

Free cash flow (FCF) is $2.67B. FCF growth rate is 3.99%. EPS growth CAGR is 3.24%. Weighted average cost of capital (WACC) is 10.00%.

Historical revenue data covers 7 years from FY19 to FY25. Net income history spans 7 years. Free cash flow and capital expenditure data spans 7 years. GoodMoat displays interactive charts for revenue, net income, FCF vs CAPEX, and cash-to-debt ratios to help investors identify financial trends.

Use Cognizant Technology Solutions Corp - Class A's financial data to assess the company's earnings quality, balance sheet health, and cash generation. Compare key metrics across periods to identify trends before making investment decisions with GoodMoat's valuation tools.